Sector Strategies 101: What, Why, How and Impact September 23, 2014 SWAMMEI Business Engagement Meeting Presented by Lindsey Woolsey.

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Presentation transcript:

Sector Strategies 101: What, Why, How and Impact September 23, 2014 SWAMMEI Business Engagement Meeting Presented by Lindsey Woolsey

Designs by

Today’s Industry Partnerships: Are employer driven Are regional Are convened by a credible third party Act as a coordinating body across multiple education, workforce development, economic development and other programs Create highly customized responses to a target industry’s needs, and therefore highly accurate responses They are about more than workforce training Treat employers as partners, not just customers Are NOT a grant program, a short term project, a passing fad; they are a long term partnership

THEY ARE DIFFERENT FROM: Your state workforce investment board Your regional or city economic development board Your Chamber of Commerce An industry association Your Community College Advisory Boards A career pathway employer group

Why Sector Partnerships? skills mismatch I.There is increasing debate about a skills mismatch in our economy: by 2020, nearly two out of every three U.S. jobs will require some postsecondary education and training, but 42% of adults in the U.S. (25-64) have no PSE credential. 64% of companies say they cannot find qualified applicants for management, scientific, engineering or technical positions. -McKinsey Survey 67% of small and midsize manufacturers report moderate to severe workforce shortages, and they predict this will get worse not better. -National Manufacturing Institute Survey stagnant job growth II.We are witnessing deep and long-term impacts from stagnant job growth : Jobseeker to job ratio in 2013 is still 3-to-1. fewer resources : steady declines in investment since the eighties. III.We must address these challenges with fewer resources : steady declines in investment since the eighties. Federal employment and training expenditures (non-veteran) down. Federal employment and training expenditures (non-veteran) down. Higher education enrollments/tuitions up; appropriations down. Higher education enrollments/tuitions up; appropriations down.

What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. Education Historically: Train & Pray I. Workforce Development I. Economic Development

What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. Education Today: Career Pathways I. Workforce Development I. Economic Development

Designs by What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development I. Economic Development ?

Designs by What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development I. Economic Development Historically: Business Attraction

Designs by What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development I. Economic Development Today: Industry Clusters

Designs by Industry Clusters What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development ? I. Economic Development

Designs by Industry Clusters What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development Historically: Customized Business Training + Job Matching III. Economic Development

What’s our response? EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. EducationCareer Pathways I. Workforce Development Today: Sector/Industry Partnerships III. Economic Development Designs by Industry Clusters

Designs by

Power Generation Skill Panel, WA “The Power Generation Skill Panel has effectively met the needs of employers, workers, and the training system through collaboration and focused work on critical issues. By meeting the demand driven skills needs of industry we are all more competitive.” --Bob Guenther, IBEW Local 77 Convened by the Centralia Community College Involves major power generation plants (coal, hydro, and wind), plus major public utilities around the state Key partners are Labor, community colleges, workforce Boards, and industry experts Products include: 17 articulated “skills standards”manuals for key occupations Shared purchase of OJT key curriculum Revised apprenticeship program Creation of hands-on training facility at an un- used nuclear power plant

Cochise Utilities Partnership, AZ Problem: Sulphur Springs Valley Electric Cooperative (SSVEC) realized no local pool of skilled line workers Cost: Recruiting from outside the area expensive, and relocating workers risky College could not create a program for just one company – no economy of scale Convener: SSVEC Corporate partners: SSVEC, Sierra Southwest Cooperative, Apache Nitrogen Products, Southwest Gas, Valley Telecom, Cox Communications Public partners: Southeast Arizona Workforce Connection, Cochise Community College Outcomes: – New 1-year Utility Industry Certificate – Industry guest speakers and instructors – Company sponsored, for-credit internships – Shared job fairs across corporate partners – Company-to-company networking formerly non- existent “Getting approached by a peer company was a breath of fresh air, someone who is actually a competitor. The resulting utility program and certificate would not have happened without that outreach. And there’s so much more to do.” – Elaine Babcock, HR Manager, Southwest Gas

The Green Alliance (Energy-focused Manufacturing), PA J&J Mechanical, a small commercial HVAC company, quadrupled their employee base as a result of expanded connections to residential retrofitting needs = 20 NEW JOBS Maccabee Industrial, a steel fabricator, expanded product line to include windmill skeleton construction = NEW PRODUCT LINE, 10 NEW JOBS Gerome Manufacturing, steel fabricator, expanded wind mill parts production, added new product line to product brackets for construction of green buildings = NEW PRODUCT LINE, 18 NEW JOBS Therm-O-Rock East, Inc., manufacturer of vermiculite (material used to insulate batteries) discovered through the Partnership that the material could be used in retrofitting insulation, as well as in green soil for potted plants and gardens = 2 NEW PRODUCT LINES, 20 NEW JOBS Tri-State Biofuels, a small woodstove pellet manufacturer, connected with Marsalis Shale oil and gas drilling companies via the Partnership, researched uses of wood pellets as absorber of drilling waste, and invented a new product. = NEW PRODUCT LINE, 25 NEW JOBS = TRIPLED SAWDUST PURCHASES FROM LOCAL SAWMILLS World Kitchen, formerly Corningware, now makes pyrex glass for solar panels. Via Partnership networking, added new production line to meet regional demand = NEW PRODUCT LINE = 60 NEW JOBS * Launched in 2010, over 153 jobs created by Summer 2012

A Partnership’s Geographic Footprint Depends on region’s labor market One labor market region should only have one sector partnership focused on the same industry Actual boundaries of “region” may vary depending on target industry – be flexible The State of Montana should probably have: – more than one manufacturing partnership – more than one energy partnership – more than one healthcare partnership Synergies, opportunities for shared products, insights into needed policy changes can happen across multiple partnerships on statewide basis

Designs by Industry Clusters Sector Strategies Coming of Age: EDUCATION, WORKFORCE & ECONOMIC DEVELOPMENT I. Education Career Pathways I. Workforce Development III. Economic Development

This slide created by Collaborative Economics, Inc.

Questions Now? Questions later? Contact me anytime: Lindsey Woolsey